Minicaso Goodweek Tires
Enviado por ange.caroj • 3 de Noviembre de 2014 • 309 Palabras (2 Páginas) • 492 Visitas
Mini Case: Goodweek Tires, Inc.
Assumptions
PP&E Investment 120,000,000
Useful life of PP&E Investment (years) 7
Salvage Value of PP&E Investment 60,000,000
Annual Depreciation Expense (7 year MACRS)
Ending Book
Year MACRS % Depreciation Value
1 14.29% 17,148,000 102,852,000
2 24.49% 29,388,000 73,464,000
3 17.49% 20,988,000 52,476,000
Last year of project 4 12.49% 14,988,000 37,488,000
5 8.93% 10,716,000 26,772,000
6 8.93% 10,716,000 16,056,000
7 8.93% 10,716,000 5,340,000
8 4.45% 5,340,000 0
SuperTread price/unit in OEM market (year 1) 36.00
SuperTread price/unit in Replacement market (year 1) 59.00
SuperTread cost/unit (year 1) 18.00
Year 1 marketing and admin costs 25,000,000
Annual inflation rate 3.25%
Corporate Tax rate 40.00%
Beta (1/24/97 Valueline) 1.30
Rf (30 year U.S. Treasury Bond) 5.50%
Rm (S&P 500 30 year average) 13.50%
Re (from CAPM) Re= Rf+ e[ RM - Rf ] = 0.055 + 1.3[ 0.135 - 0.055 ] = 15.90% 15.90%
Year 1 OEM Market for SuperTread (2 million new cars x 4 tires/car) 8,000,000
OEM Market growth 2.50%
SuperTread share of OEM market 11.00%
Year 1 Replacement Market for SuperTread 14,000,000
Replacement Market growth 2.00%
SuperTread share of Replacement market 8.00%
Year 0 1 2 3 4
Sales
OEM Market
Units 880,000 902,000 924,550 947,664
Price 36.00 37.53 39.13 40.79
Total OEM Market 31,680,000 33,852,060 36,173,042 38,653,156
Replacement Market
Units 1,120,000 1,142,400 1,165,248 1,188,553
Price 59.00 61.51 64.12 66.85
Total Replacement Market 66,080,000 70,266,168 74,717,530 79,450,885
Total Sales 97,760,000 104,118,228 110,890,572 118,104,041
Variable Costs
Units (OEM + Replacement) 2,000,000 2,044,400 2,089,798 2,136,217
Cost 18.00 18.77 19.56 20.39
Total Variable Costs 36,000,000 38,363,166 40,881,699 43,565,831
SG&A 25,000,000 25,812,500 26,651,406 27,517,577
Depreciation 17,148,000 29,388,000 20,988,000 14,988,000
EBIT 19,612,000 10,554,562 22,369,466 32,032,633
Interest 0 0 0 0
Tax (40%) 7,844,800 4,221,825 8,947,786 12,813,053
Net
...